Comet Ridge Ltd · ASX:COI

Comet Ridge — Galilee Basin Coal & Energy Conference 2013

30 slides from Comet Ridge's conference presentation, Nov 25, 2013

  1. Slide 1: Comet Ridge's Galilee Basin Extended Production Test Project

    For personal use only Comet Ridge’s Galilee Basin Extended Production Test Project Galilee Basin Coal & Energy Conference 2013 Tor McCaul, Managing Director 25 November 2013 www.cometridge.com.au ASX Code : COI www.cometridge.com.au

  2. Slide 2: Introduction – Comet Ridge Limited

    For personal use only Introduction – Comet Ridge Limited Strategic CSG assets Quality team  Large resource and  Highly experienced equity positions board and management team  Multi-basin exposure  Combines technical and  Significant 3C commercial; CSG and Resource base conventional; upstream 

  3. Slide 3: Contents

    For personal use only Contents Galilee Basin Gas Assets Extended Production Test Commercial Options ASX Code : COI www.cometridge.com.au 3

  4. Slide 4: Galilee Basin Gas Assets

    Section 1 For personal use only Galilee Basin Gas Assets ASX Code : COI www.cometridge.com.au 4

  5. Slide 5: Galilee Basin – Background

    For personal use only Galilee Basin – Background  Large area (~250,000km2) covering a big part of central western Queensland  Overlain by Eromanga Basin and underlain by Drummond Basin  Land use is grazing – cattle and sheep  Oil recoveries and conventional gas flows over a number of years  One

  6. Slide 6: Eastern Basin Geology

    For personal use only Eastern Basin Geology  Betts Creek coals – Permian in age  Up to 6 individual seams  Thick, continuous coals deposited over very large area  Coals shown as gas bearing and permeable  Coal sub-crops in the east and dips to the west  Net Coal thickness in eastern basin gene

  7. Slide 7: Systematic Path to Reserves

    For personal use only Systematic Path to Reserves ASX Code : COI www.cometridge.com.au

  8. Slide 8: Resources Independently Certified

    Resources Independently Certified  Galilee Basin Significant Independent Resource Booking For personal use only Gunn Project Area 3C Gas Resources are material in size (1,870 PJ) and 100% COI ASX Code : COI www.cometridge.com.au 8

  9. Slide 9: Galilee Exploration History: 2009 Original Tenure Award

    For personal use only Galilee Exploration History 2009 Petroleum Exploration Original Tenure Award  Large position – almost 13,000km2 (0.7% of QLD)  ATP743  100% equity  12 year term effective September 2009  ~6476km2  ATP744  100% equity  12 year term effective October 2009  ~6515km2 ASX C

  10. Slide 10: Galilee Exploration History: 2009-10 Exploration Program

    For personal use only Galilee Exploration History 2009-10 Exploration Program  Drilling Program Objectives  Confirm coal thickness, depth and continuity  Quantify gas content at various depths  Quantify coal permeability at various depths  Obtain water samples from the Betts Creek coals  Bette

  11. Slide 11: Galilee Exploration History: 2009-10 Exploration Program

    For personal use only Galilee Exploration History 2009-10 Exploration Program  5 well exploration program  Total drilled section 5010m  Coal thickness ranged from 16m to 24m with up to 22m of shale  Over 1000m core cut & 10 drillstem (flow) tests  Significant laboratory coal analysis  Gunn Pro

  12. Slide 12: Galilee Exploration History: 2011 Gunn 2D Seismic Survey

    For personal use only Galilee Exploration History 2011 Gunn 2D Seismic Survey  Seismic Program Objectives  Confirm coal continuity  Improve understanding of structural features  Define project area  252km 2D seismic survey  First modern 2D seismic in these blocks  Excellent image quality in B

  13. Slide 13: Galilee Exploration History: 1015P Farm-in Area

    For personal use only Galilee Exploration History 1015P Farm-in Area  2012 farm-in to southern part of ATP1015P held by QER  Access to additional 825km2  Creates continuous acreage area, extending Gunn Project area to the east  Three stages to allow equity up to 75%  Stage 1 completed- two appr

  14. Slide 14: Galilee Exploration History: 2012-2013 Exploration Program

    For personal use only Galilee Exploration History 2012-2013 Exploration Program  3 well exploration and appraisal program  Gunn 2 drilled in ATP744 Gunn Project Area  16.2m net coal  Four coal intervals tested – demonstrated good to excellent productivity  2 wells – ATP1015 Farm-in area  20 to

  15. Slide 15: Gunn Project Area

    For personal use only Gunn Project Area Gunn Project Area  5 coal seams intersected  depth to coal 700-1000m  >16m net coal  gas contents >4m3/t  good permeability within target coals Gunn Project area and Farm-in area coals contain recoverable gas over an estimated area of 1865km2 ASX Code : C

  16. Slide 16: Additional Gas Potential

    For personal use only Additional Gas Potential Conventional and Unconventional Potential  3 historic petroleum wells within ATP 743 and ATP 744 recovered oil and/or gas from Lake Galilee Sandstone at base of Galilee Basin  Carmichael 1 well flowed gas to surface from deeper sandstone intervals  E

  17. Slide 17: Gunn Extended Production Test

    Section 2 For personal use only Gunn 2 Extended Production Test ASX Code : COI www.cometridge.com.au 17

  18. Slide 18: Gunn Extended Production Test (EPT)

    For personal use only Gunn 2 Extended Production Test (EPT) Gunn 2 - EPT  Nov 2012 -Gunn 2 completed for production  Nov to Jan 2013 - Surface facilities installed - water storage tanks, flowlines, metering facilities and power generation  Jan 2013 –commissioned for operation EPT Objectives  Est

  19. Slide 19: Gunn – Production Well Design

    Gunn 2 – Production Well Design For personal use only  Steel casing run and cemented in place with cement returns all the way back to surface  This allows flow into the well of only the selected zone(s)  For Gunn 2, only 4 metres of coal perforated and flowed into the well for pumping to surface

  20. Slide 20: Gunn – Extended Production Test

    For personal use only Gunn 2 – Extended Production Test Gunn 2 - EPT  Perforated over four metre interval - C1 coal seam only  Seam isolated above and below by impermeable mudstone  Designed to ensure water only produced from Betts Creek reservoir coal ASX Code : COI www.cometridge.com.au 20

  21. Slide 21: Gunn – production test

    Gunn 2 – production test Gunn 2 – EPT results For personal use only  Water rate progressively increased over several weeks  Stabilized water production rate of 400 bwpd  Reached limit of pumping equipment  Pressure analysis indicate four metre coal interval has greater flow capacity  Formation

  22. Slide 22: Gunn – Extended Production Test

    For personal use only Gunn 2 – Extended Production Test ASX Code : COI www.cometridge.com.au 22

  23. Slide 23: Groundwater

    Groundwater Groundwater over ATP’s For personal use only  Agricultural Groundwater predominantly sourced from  Clematis Group  Moolayember Formation  Alluvium and colluvium  Nil sourced from Betts Creek beds  Clematis Group and Moolayember Formation are intake beds for GAB  Betts Creek beds s

  24. Slide 24: Commercial Options

    Section 3 For personal use only Commercial Options ASX Code : COI www.cometridge.com.au 24

  25. Slide 25: Tightening Eastern Australia Gas Market

    Tightening Eastern Australia Gas Market  4 large LNG consortia control For personal use only Qld domestic gas demand and projected almost 90% of 2P CSG reserves gas demand for LNG exports in Eastern Australia  Intensifying competition for future gas reserves, driven by LNG growth  Increasing pres

  26. Slide 26: Galilee Basin – Commercial Options

    For personal use only Galilee Basin – Commercial Options Galilee Basin market opportunities  Different market segments emerging for commercial development: coal, power, LNG  Development option 1: Power for coal mines / local generation ASX Code : COI www.cometridge.com.au 26

  27. Slide 27: Galilee Basin – Commercial Options

    For personal use only Galilee Basin – Commercial Options Galilee Basin market opportunities  Development option 2: Gas supply to LNG projects at Gladstone  Development option 3: Domestic gas supply via Barcaldine ASX Code : COI www.cometridge.com.au 27

  28. Slide 28: To Summarise……..

    For personal use only To Summarise……..  Comet Ridge has built significant eastern basin experience and understanding, positioned within reach of markets  Large CSG resources independently certified and deeper sandstone gas present  Pilot scheme is the key next step with the aim of conversion of r

  29. Slide 29: Important Notice and Disclaimer

    For personal use only Important Notice and Disclaimer Disclaimer This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge). The Presentation and information contained in it is being provided to shareholders and investors for information purposes onl

  30. Slide 30: Comet Ridge Limited Contact

    Comet Ridge Limited For personal use only Contact Level 3 GPO Box 798 Telephone: +61 7 3221 3661 283 Elizabeth Street Brisbane 4001 Facsimile: +61 7 3221 3668 Brisbane 4000 Email info@cometridge.com.au www.cometridge.com.au ASX Code : COI www.cometridge.com.au 30

Comet Ridge — Galilee Basin Coal & Energy Conference 2013 on 6ix